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Net operating profit after taxes (NOPAT) - how?

Wondering how would one properly calculate NOPAT using available morningstar fundamentals>

5 responses

NOPAT = Fundamentals.operating_income.latest - Fundamentals.tax_provision.latest

You could also substitute EBIT instead of operating income, which is a bottom-up rather than top-down calculation of NOPAT.

Thanks Harry. Why operating_income and not net_income_income_statement?

You asked for net operating income after taxes, not net income after taxes. Net income is already the bottom line, net of all interest, taxes, unusual expenses, and nonoperating charges.

Right, thanks!